IBM has unveiled a range of low-priced servers for the SME market.
The company's new line starts with the xSeries 100 server, which has a list price of $600 (£350) when equipped with an Intel Celeron processor.
The x100 can support higher-performance chips up to the Intel dual-core Pentium 4, and supports Microsoft’s Windows Small Business Server 2003 and Windows Server 2003.
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The machine also supports Linux solutions from Red Hat and Novell. The higher-spec xSeries 206m and xSeries 306m machines are also in the range.
The machines will be sold under IBM’s Express brand aimed at small businesses. Sun launched its own range of entry-level servers last week.